Own-occupation policy

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Own-Occupation Policy

An insurance policy that pays benefits to the policyholder if he/she becomes unable to perform work for which he/she is qualified. For example, if a dictionary writer's hands fall off, he likely would be eligible for the benefits of an own-occupation policy because he would be unable to write definitions for the dictionary. Some own-occupation policies pay benefits if the policyholder becomes unable to perform his/her current job, while others only do so if he/she is unable to do any job that he/she would otherwise be able to do.
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Own-occupation policy.

If you purchase an own-occupation disability insurance policy, you are entitled to receive benefits if a disability prevents you from performing the skilled work for which you have been trained.

Some other disability policies pay a benefit only if you are unable to do any type of work for which you're qualified.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The best policies pay out if you cannot do your current job - so-called own-occupation policies.
Many companies have stopped selling noncancelable disability policies that are occupation specific with lifetime benefits, but there are still some modified own-occupation policies being offered, Darras said.